Author: therawinformant

Chinese premium electric vehicle maker NIO (NYSE:NIO) has taken off like a rocket ship in 2020, with NIO stock surging nearly 600% from a low of ~$2.40 in March, to a high of ~$16.40 in July. Because I was bullish on NIO stock down at the lows, many investors have asked me: what's the next electric vehicle stock ready to fly higher? The answer may be AYRO (NASDAQ:AYRO) stock.Source: buffaloboy / Shutterstock.com Texas-based AYRO is a nascent, freshly public, $90 million specialized EV maker with not much to show from a financial perspective. But the company finds itself at the epicenter of one of the EV market's most explosive verticals, with a compelling product portfolio, a unique and expansive distribution network and a clear opportunity to turn into a multi-billion-dollar EV giant within the next few years.Of course, this micro-cap stock is risky. But I think AYRO stock is worth the risk. Because, if things go right, AYRO stock could supercharge your portfolio over the next few years, in the same way NIO stock has over the past few months. Here's a deeper look.InvestorPlace – Stock Market News, Stock Advice & Trading Tips The Coming LSEV RevolutionThe electrification of transpiration promises to be one of the defining megatrends of the 2020s. In short, by the end of the decade, upwards of 20% of all vehicles globally will likely be zero-emission vehicles. That number will trend towards 100% over time. * 15 Growth Stocks That Are Being Propped Up By Low Rates One burgeoning yet often overlooked hyper-growth vertical of the EV market is what insiders call purpose-built, low-speed electric vehicles, or LSEVs. I'm talking three-wheel electric cars, electric golf carts, e-scooters, campus security EVs, so on and so forth.You might be thinking "OK, those are cool and all, but this is a niche market, isn't it?"Not really. Globally, there are about 40,000 golf courses, over 25,000 universities, over 200,000 hotels, nearly 18,000 airports, and countless more corporate campuses, fire stations, event stadiums, etc.Pretty much all of those properties use at least one and often several small, purpose-built vehicles — like golf carts or food trucks — meaning there are, at least, hundreds of thousands and likely millions of these small vehicles in the world. Most of those vehicles are gas-powered today.Almost all of them will be electrified over the next decade, as institutions strive to cut down carbon emissions and eliminate fuel costs.Thus, over the next several years, EV companies will sell hundreds of thousands of LSEVs to golf courses, universities, hotels, airports, corporations, stadiums, so on and so forth.To that end, the LSEV revolution will be huge. Like almost $25 billion huge. And companies exposed to this LSEV megatrend will see their revenues, profits and stock prices soar higher. Meet AYROReaders of mine are familiar with three-wheel EV pioneer Arcimoto (NASDAQ:FUV). It's a company which I've pounded the table on before as a great way to play the LSEV megatrend.FUV stock — like NIO stock — has been a big winner in 2020. Year-to-date, FUV stock is up about 300%.But, one freshly-public, under-the-radar, micro-cap LSEV company which the market is sleeping on is AYRO.Founded in 2017 (and only public since May 2020, following a merger with DropCar), Texas-based AYRO is a young, $90 million company that's in the top of the first inning of a huge, multi-year growth narrative.Here's the story. On the Cusp of Breakthrough GrowthAYRO has two LSEVs.First, there's the Club Car 411, a compact, four-wheel EV that looks like an electric golf cart and is built for cross-purpose use across a variety of end-markets, such as a security EV on college campuses or a transportation EV for resorts. Then there's the AYRO 311, a three-wheel EV designed specifically for last-mile delivery.AYRO hasn't done much of anything yet. Revenues in 2019 were under $1 million.But the company has scored a hugely valuable, strategic partnership with Club Car — a subsidiary of the $12 billion conglomerate Ingersoll Rand (NYSE:IR) and one of the world's leading suppliers of golf carts and small utility vehicles to golf courses, universities, and the like.Thanks to this partnership, AYRO's Club Car 411 is now being pushed through Club Car's extensive and established global dealer distribution network.The implication is that, over the next few years, AYRO's Club Car 411 could start to land some pretty big contracts with universities, golf courses, and hotel properties as those organizations join the small vehicle electrification wave.Winning those contracts will help AYRO grow its brand and reputation as a top-tier LSEV provider early on in the LSEV revolution. Such branding power will enable AYRO to develop first-mover's advantage in the space. The company can then turn that first-mover's advantage into sustained leadership through word-of-mouth recommendations (universities talk) and more contract wins.Management can subsequently lean into the company's branding power to more efficiently drum up interest for and sell its AYRO 311 vehicles to restaurants looking to build out their own delivery networks, at a time when delivery is of increasing importance (thanks, Covid-19) yet food delivery platforms like GrubHub (NYSE:GRUB) are eating into restaurant profits (in many case, they cut into restaurants' profits by 30%).Big picture: AYRO is on the cusp of going from selling a handful of LSEVs in 2019, to potentially selling tens of thousands of these vehicles per year over the next few years. The Next NIO?To be clear, NIO sells premium passenger EVs. AYRO sells affordable, purpose-built, utility EVs. The two markets don't really overlap.But in terms of percent returns, AYRO stock could end up looking a lot like NIO stock.AYRO just expanded its Austin factory from 10,000 square feet to 24,000 square feet. The company did so because demand trends had outpaced AYRO's production capacity, which was sitting at 200 vehicles per month. The new factory can churn out 600 vehicles per month.Relative to the addressable market — which I see as potentially millions of LSEVs — that's still a tiny number.Given the company's strong product line-up and expansive distribution network, as well as strengthening demand tailwinds for zero-emission transportation, I can easily see AYRO outgrowing this new factory rather quickly, and scaling to several thousand LSEV deliveries per month.Realistically, I think AYRO could grow to 30,000+ LSEV deliveries per year. At $20,000 per vehicle, that equates to $600 million in revenue. Gross margins on the vehicles should round out to ~25%. The opex rate will likely wind up at 15%. Operating margins should clock in at 10%. On $600 million in revenues, that implies $60 million in profits.A market-average 17-times multiple on that equates to a potential future valuation for AYRO of $1+ billion.That implies huge, 1,000%+ long-term upside potential in AYRO stock. Beware of the RisksAYRO stock is not without risks.This is a tiny company. With a minimal track record. In a highly competitive space. With no guarantee that things will plan as I expect them to.Concurrently, AYRO stock is a micro-cap. That's less liquid than something like Tesla (NASDAQ:TSLA) stock. Less liquidity implies bigger downside risks in the event that things don't go as planned, or if underlying fundamentals start to meaningfully deteriorate.In other words, this is a speculative stock. It's not for your lunch money. Bottom Line on AYRO StockNIO stock has been a huge success in 2020. But the valuation on the stock now implies that the best of that mega-rally is over.So if you're looking for the next NIO stock, AYRO stock could be your answer.This micro-cap company appears to be on the verge of breakthrough growth in the explosive LSEV market over the next few years. If management successfully executes against the company's compelling market opportunity, then AYRO stock could turn into a ten-bagger.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been rated one of the world's top stock pickers by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long NIO. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post The Next Big EV Stock to Buy Might Just Be AYRO appeared first on InvestorPlace.

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Gold has moved to an all-time high, and many gold miners have rallied in response. But, somewhat quietly, silver stocks have gained as well.A move higher in the underlying commodity no doubt has helped. Indeed, save for a brief move last year, silver trades at its highest level in almost four years. And there's a case that silver stocks should continue to rally and potentially outperform its more valuable and more widely-held counterpart.To be sure, the setup for gold at the moment seems almost perfect. The coronavirus pandemic adds risk worldwide, and can lead investors to the safety of the yellow metal. A ballooning federal deficit, along with interventions by the Federal Reserve, raise the specter of inflation — another bullish catalyst for gold.InvestorPlace – Stock Market News, Stock Advice & Trading TipsBut silver and silver stocks, can benefit for similar reasons. Indeed, they have: silver has rallied some 65% from March lows. Meanwhile, silver can get a boost from industrial demand as well, meaning it might outperform if the global economy manages to recover. Electric vehicles and solar panels both require silver, which could drive demand in coming years as well.At the least, precious metals investors can look to the group for diversification. For those investors, here are eight silver stocks that deserve at least a long look: * 15 Growth Stocks That Are Being Propped Up By Low Rates * Pan American Silver (NASDAQ:PAAS) * Endeavour Silver (NYSE:EXK) * MAG Silver (NYSEAMERICAN:MAG) * Fortuna Silver Mines (NYSE:FSM) * Wheaton Precious Metals (NYSE:WPM) * Silvercorp Metals (NYSEAMERICAN:SVM) * First Majestic Silver (NYSE:AG) * iShares Silver Trust (NYSEARCA:SLV) 8 Silver Stocks: Pan American SilverSource: Shutterstock The simplest play among silver stocks is to go with the biggest play. As far as U.S.-listed names go, that's Pan American Silver.Pan American admittedly isn't the world's largest producer. That honor goes to Mexico's Fresnillo plc (OTCMKTS:FNLPF). In fact, despite its name, Pan American isn't even a pure-play silver stock.Revenue recently has been tilted more toward gold. But last year's acquisition of Tahoe Resources added substantial silver reserves, Tahoe's Escobal mine is the world's second-largest.After that deal, almost half of reserves come from silver. But regardless of where its revenue has come from, PAAS stock is a winner. The stock has rallied over 300% in the last five years, far outpacing gains in silver or gold.That's what miners are supposed to do: outperform the commodity when it rises. But as I've written relative to gold miners like Barrick Gold (NYSE:GOLD), the industry often has failed to provide that leverage.The fact that Pan American has delivered on its promise makes it a solid pick for silver bulls going forward. The diversification of the portfolio, and industry-leading all-in costs, provide downside protection as well. As far as long-term, "set it and forget it" picks in the mining space go, PAAS is at or near the top of the list. Endeavour SilverSource: Shutterstock Of course, there's a cost to Pan American's diversified portfolio and lower risk. It means lower reward as well. For ardent silver bulls, there are other choices in the sector that might be more appealing.One of those is Endeavour Silver. The Canadian company operates three mines in Mexico, is developing another, and has six properties in the midst of exploration projects. Reserves and revenue are more tilted toward silver, though Endeavour produces gold as well.The potential rewards here from a bounce in silver are greater than those at a miner like Pan American, given Endeavour's smaller size. But the risks are higher, too. Endeavour's execution hasn't always been on point: EXK stock is flat over the last three years despite a 20% increase in silver. Two of the three operating mines are in the midst of improvement efforts, which may or may not pay off. * 10 Work-From-Home Stocks That Are Beating the Pandemic Like most junior miners, EXK is a high-risk play. But as far as silver stocks go, few, if any, offer higher potential rewards. MAG SilverSource: Shutterstock MAG Silver offers an intriguing play on a massive project in Mexico. MAG owns 44% of the Juanicipio mine in the state of Zacatecas. Juanicipio lies in a region long known for its resources: mining has gone on in the area since the 1500s.Early exploration suggests that Juanicipio could be an enormous project, with high-grade silver as well as gold, lead, and zinc. MAG Silver has to fund its share of the costs — some $46 million in 2019 — but Fresnillo will operate the mine. With $130 million in cash and no debt, MAG should be able to contribute its share of costs until the mine is up and running.From that point, MAG will have options. It could leverage that asset to become a larger silver operator, much like Pan American. It could sell its interest; Fresnillo could be interested in consolidating its holding. Regardless of how the story plays out, the combination of success in Juanicipio and a higher silver price could make MAG one of the biggest gainers among silver stocks. Fortuna Silver MinesSource: Shutterstock For some investors, Fortuna Silver Mines might be a 'Goldilocks' play among silver stocks. The miner remains relatively small, with a market capitalization just under $1 billion, even with FSM stock at its highest level in almost two years.But it's not an early-stage play. Fortuna is established and profitable. Price-to-earnings multiples aren't the best way to judge mining stocks, but a 16x forward P/E multiple, and a price at about 1.3x book, both suggest valuation is reasonable.Fortuna will have some short-term issues to work through. Production in Mexico took a hit in the first half of the year amid closures driven by the coronavirus pandemic. The company is spending significant amounts of capital to complete its Lindero mine in Argentina, which already is well over budget. * 8 Presidential Election Stocks to Buy in Case Trump Wins Again On the other hand, there's the chance for significant upside. Lindero offers potentially huge reserves, and should improve profitability nicely in 2021 and beyond. Normalized production at the Mexican properties can help as well. Particularly if silver keeps rallying, FSM can be a big winner. Wheaton Precious MetalsSource: Shutterstock Wheaton Precious Metals formerly was known as Silver Wheaton, but as its portfolio shifted, the company changed its name to account for the new reality. According to a presentation this month, 53% of production over the next five years should come from gold, against just 40% for silver.Still, WPM stock does offer solid exposure to silver through a proven business model. Wheaton is a so-called streaming company, which funds exploration mines in exchange for a share of sales once production commences.It's a model executed well in the gold space by Royal Gold (NASDAQ:RGLD) and Sandstrom Gold (NYSE:SAND), but WPM stock has held its own. Over five years, the stock has more than tripled, and nearly matched the returns in SAND. Both names have sharply outperformed the more widely-held RGLD, which has 'only' doubled.Because of the portfolio, investors interested in WPM stock do need to be bullish on gold as well. But the value of the streaming model has been proven, and if silver outperforms gold Wheaton should outperform its rivals. Silvercorp MetalsSource: Shutterstock Silvercorp is an interesting pick among small-cap silver stocks. Silvercorp's three mines are located in China, and produce mostly silver along with lead and zinc.SVM stock isn't likely to be the biggest winner going forward, but it's been the biggest winner among silver stocks in recent years. Shares have risen more than 500% over the past five years as the mines have reached production and driven impressive free cash flow.The operational profile should continue to be solid, even if the stock isn't likely to gain another 500% going forward. Silvercorp has no debt. The mines should have at least 15 years of life remaining, according to the company. * 9 Stocks to Buy for a Wild Ride in July As a result, SVM presents a solid leveraged bet on the silver price. Its upside at this point probably doesn't match that of EXK or even MAG, but solid execution and a debt-free balance sheet minimize the downside as well. First MajesticSource: Shutterstock One reason to keep an eye on AG stock is that it's been somewhat left out of the rally in the industry so far. Shares are down 12.5% year-to-date, while silver is up about 9% and other silver stocks have gained at least 10%.Like Fortuna, First Majestic is taking a bit of a hit this year: its three producing mines all are in Mexico. But the company should get back to normal, which should be good for the stock. Over time, the stock has been a huge winner, with a nearly 1,400% return since going public.Bears have cited some concerns about underinvestment, and AG stock has seen unsustainable rallies in the past (notably in 2016). But as a mid-cap pick, AG still is worth a long look. iShares Silver TrustSource: Shutterstock Of course, investors can also buy the silver through an exchange-traded fund like SLV. The ETF does have an annual fee of 0.50%, but physical ownership entails cost (and risk) as well.With silver prices rising, there's perhaps a case that the rally has gone too far. But, again, secular trends suggest demand should rise. Production may not be keeping pace. And inflation, so often cited as a tailwind for gold, could benefit silver as well.The more aggressive way to play the metal is through silver stocks, which offer upside leverage. But those stocks also introduce execution risk. For some investors, the best strategy may be to keep it simple. For that strategy, SLV fits the bill.Vince Martin has covered the financial industry for close to a decade. He has no positions in any securities mentioned. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 8 Silver Stocks to Consider If Gold Isn't Your Thing appeared first on InvestorPlace.

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Shares in Nikola Corp. (NKLA) plunged almost 15% in extended market trading on Friday as the maker of hydrogen-fueled vehicles filed an offering to sell 23.9 million shares of common stock.The stock dropped to $41.78 in after-market trading on Friday. According to the SEC filing, the 23,9 million shares of common stock are issuable upon the exercise of 890,000 warrants originally issued in a private placement in connection with the initial public offering of VectoIQ and up to 23 million shares. The company expects to receive $11.50 per warrant and generate up to $274.7 million from the exercise of the warrants.In addition, the preliminary share prospectus disclosed that shareholders may offer from time to time to sell 53.4 million shares of common stock.Since Nikola went public on June 4 via a merger with VectoIQ, the stock soared from below $15 before the deal was announced to $48.84 at the close on Friday. Shares in the company, which plans to manufacture hydrogen-electric trucks but has not yet produced or sold any vehicles, have plunged 28% over the past month.J.P. Morgan analyst Paul Coster this month raised NKLA to Buy from Hold and maintained a $45 price target, saying that the stock is “starting to look attractive for long-term investors”.“We believe the stock does not fully price in successful execution of the multi-year growth strategy, which yields earnings power of ~$1.7bn EBITDA in 2027,” Coster wrote in a note to investors. “We could get less constructive in a hurry, if the firm fails to execute to plan, or if competition ratchets up faster than we anticipate.”The analyst pointed to a “number of potential positive catalysts in coming weeks and months” such as a partner to produce its Badger pick-up truck, plans for hydrogen charging stations in the UK, and “potentially accelerated implementation plans for the FCEL truck in the U.S”.For now NKLA has four analysts covering the stock, who are divided between 2 Buy ratings and 2 Hold ratings adding up to a Moderate Buy consensus. The $56 average price target puts the upside potential in the shares at 15% over the coming year. (See NKLA stock analysis on TipRanks).Related News: Tesla Car Registrations In California Sink 48% in Q2 – Report Tesla Climbs 6% In Pre-Market, Boosted By ‘Accelerating’ China Projects Tesla’s Elon Musk Overtakes Buffett On Billionaires Rich List More recent articles from Smarter Analyst: * Top Ships (TOPS): Potential Newbuild Delivery Delays Put This Analyst on the Sidelines * Celsion (CLSN) Stock Loses a Wall Street Supporter * $1000 Is the Number to Watch for Shopify Stock, Says 5-Star Analyst * Q2 Semiconductor Preview: What to Expect

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They used to be shunned. Now, on any given day it seems Wall Street can't get enough of them. And I'm not discussing blue-chips or large-cap tech stocks. The reference is directed at recent "special purpose acquisition companies" or SPACs. And if investors are still turning a blind eye or aren't familiar with these stocks to buy, they might be missing out on the next big thing.Let me explain.The market has been on fire in recent months. Specifically, the likes of Apple (NASDAQ:AAPL), Tesla (NASDAQ:TSLA) and Amazon (NASDAQ:AMZN) are up double and even triple digits on the year and setting new record highs almost daily. It's crazy, right? Blame it on the Federal Reserve. But they're not alone and it's not the only reason either.InvestorPlace – Stock Market News, Stock Advice & Trading TipsOther companies such as Zoom Video (NASDAQ:ZM), Teladoc (NYSE:TDOC) or Peloton (NASDAQ:PTON) have also seen their businesses boom in today's more socially distanced novel-coronavirus-based work, life and play environment. Those stocks are also sporting big-time returns and even larger valuations. The combination ensures they'll be on the radars of investors trying to keep up with the Jones' for some time to come. * 15 Growth Stocks That Are Being Propped Up By Low Rates However, there is another group of stocks to buy — consisting of SPACs — that is making unprecedented inroads with investors too. This group includes: * DraftKings (NASDAQ:DKNG) * Virgin Galactic (NYSE:SPCE) * Workhorse (NASDAQ:WKHS)SPACs have seemingly crashed onto the scene overnight. The reality is they're far from new. But a handful of high profile business acquisitions in popular industries and/or dearly held themes by investment firms, followed with reduced paperwork and less onerous listing requirements have pushed SPACs into the spotlight as IPO alternatives. At the end of the day, the merged company is a new stock for investors to buy, sell and, on occasion, avoid altogether. Right now, let's take a look at above group of SPACs, which are setting up as stocks to buy for tomorrow's investors. SPAC Stocks to Buy: DraftKings (DKNG) Source: Charts by TradingViewIn the booming trend of online sports betting, DraftKings stock is a hot property. Between the company's hugely popular Daily Fantasy Sports leagues and NFL partnership, DraftKings' opportunities are enormous as states look to legalize sports betting and put a little something in Uncle Sam's coffers.DraftKings' capitalization of more than $12 billion and nosebleed price multiple may seem a certain recipe for a knockdown or two. And it has already happened over the past month. DraftKings' shares retraced a full 50% of its recent rally to all-time-highs. But as with any company in an advantaged spot inside an emerging market, shares are also poised to grow beyond today's fears.Technically, this week's bullish bottoming candlestick in DraftKings is hinting strongly that those betting on red have left the premises.It's worth going long in this stock if shares find modest follow-through next week to confirm the corrective low. Given the stock's volatility, I'd also advice using a limited risk spread or outright call option to enhance the risk-to-reward profile in this stock to buy. Virgin Galactic (SPCE) Source: Charts by TradingViewSir Richard Branson's space tourism venture needs no introduction and it has been on many investors' lists of stocks to buy lately. From the get-go shares have been a highly active battleground stock. But the company's plans of putting civilians into zero gravity are ever closer to becoming a reality later this year. And this week's CEO appointment of Disney (NYSE:DIS) exec Michael Colglazier should prove instrumental in ensuring all systems are go. * 7 New Stocks to Buy for 2021 and Beyond On the weekly price chart a meteoric rally in early 2020 followed by a healthy correction now finds SPCE stock blasting higher in an emerging uptrend within the right side of the crater-sized base. I'd expect this SPAC stock to buy to see a bit of profit-taking next week. But be sure to keep it on the radar for pullback opportunities. My best guess is any price weakness should prove short-lived. Workhorse (WKHS) Source: Charts by TradingViewThe last of today's SPAC stocks to buy is Workhorse Group. Many investors are familiar with fellow SPAC play Nikola (NASDAQ:NKLA) and the company's promise of bringing electric trucks and semis into the market. Those plans are only in the prototype stage of what could be a long and ultimately unsuccessful build.For investors wanting something more tangible within this exciting market, there's Workhorse. The company is already delivering on its electric cargo vans and pickup trucks with orders from the likes of United Parcel Service (NYSE:UPS) and Germany's DHL (OTCMKTS:DPSGY). But there's more to WKHS too.Workhorse maintains a comparatively lithe market cap of around $1.50 billion and offers investors a well-positioned drone delivery business. The company's 10% stake in privately held Lordstown Motors, whose Endurance electric truck is making some noise, could also prove to be a big win. And there's the possibility the company lands a piece of the United States Post Service next-generation vehicle contract, estimated at $6.3 billion.All told, there's a lot to like about this SPAC stock. And that includes the price chart too.Technically, shares are putting together a decent-looking corrective triangular base. The pattern has found support off the 38% retracement level of its month-long rally. Specifically, this rally was established in June, immediately after shares were re-engineered into Workhorse. I'd advise buying WKHS stock, along with a protective put or collar strategy, if shares can maintain its chart supports and motor back above $16.25 along with a bullish crossover in stochastics in tow.Disclosure: Investment accounts under Christopher Tyler's management do not own any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Special Purpose Acquisition Companies That Have Become Stocks to Buy appeared first on InvestorPlace.

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Royal Caribbean (NYSE:RCL) stock finally caught a break. After sliding for most of the past month, Royal Caribbean shares soared more than 20% on Wednesday on elevated trading volume.Source: Laszlo Halasi / Shutterstock.com News of a potential novel coronavirus vaccine has the travel stocks surging again, and the cruise lines are right in the middle of the action. Before you get too excited, however, take a moment to consider Royal Caribbean's broader business outlook. While the vaccine news is a big plus, it's not enough to justify owning the stock as a long-term investment. Here's what you need to know. Vaccine Development Is AdvancingOn Tuesday, after the market closed, Moderna (NASDAQ:MRNA) announced favorable results for its Covid-19 vaccine candidate. The company told us that its vaccine produces a strong immune response in recipients. The company's trial was small, and there are some obstacles, such as the vaccine potentially requiring a booster shot to be effective.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHowever, it appears to be a very positive development on the whole. This is causing a significant run-up in economic recovery/re-opening stocks.Cruise lines, like Royal Caribbean, have been the hardest-hit with the pandemic. The cruise companies had intended to start sailing again this summer, the second wave of the virus has caused that timeline to slip significantly. This vaccine news, if it holds up, should give cruise companies a real timeline toward getting back to business as usual.The vaccine news could also help cause a rotation from growth stocks to value names. Since March, investors have primarily focused on sectors such as software-as-a-service firms and healthcare companies whose businesses are growing or are at worst neutral as a result of the virus. * 15 Growth Stocks That Are Being Propped Up By Low RatesMeanwhile, stocks with direct exposure, such as banks, retailers and travel stocks have underperformed dramatically. The Nasdaq Composite Index has already hit new all-time highs, while most stocks with direct Covid-19 exposure remain way down from their pre-virus levels. Catalyst for Travel StocksWe could see a serious reversal of this trade in coming weeks. Up until now, we've had a ton of false starts around economic re-opening. While the skies would look clear one week, the next week we'd have states shutting things back down. California's recent move to shut restaurants and bars again was particularly demoralizing. The vaccine news could finally break this pattern and give vulnerable companies like cruise lines room for a sustained rebound.Improvement on the Covid-19 front should create a sizable rebound in travel companies, like RCL stock. However, don't assume things are actually going back to normal anytime soon. The virus has caused astounding economic damage.Even if we could get this vaccine widely-distributed tomorrow, it'd be too late to put the genie back in the bottle. Unemployment is way up and many businesses have shut down permanently. We aren't returning to 2019 levels of economic activity within a quarter or two, regardless. And Royal Caribbean, which sells entirely discretionary services to mostly middle class folks, isn't going to see business return to normal immediately. RCL Stock VerdictIf you're trading Royal Caribbean, Carnival (NYSE:CCL), or other travel stocks, this vaccine news is a gift. You should get one more big surge of trading interest that could cause a major lift for share prices in the short term.In coming weeks and months, however, people will figure out that even as the virus fades, Royal Caribbean remains a deeply-wounded company. It's not realistic to return to pre-Covid-19 share prices. The company lost too much money and weakened its balance sheet too much to return to pre-virus prosperity. Remember that it took on billions in additional debt this May at an 11% interest rate. This creates a huge ongoing interest burden that will be an anchor weighing the company down even if the industry returned to normal levels of activity.Ironically, on Wednesday, RCL stock soared far more than Moderna; Royal Caribbean was up 21% while Moderna jumped just 7%. Normally, you'd expect that the vaccine-maker would get the biggest bump on its own clinical trial results, but traders were desperate for anything positive in the travel names. That tells you something about sentiment.As such, if you own Royal Caribbean here, enjoy the rally, but keep one eye on the exits. This could be the last good opportunity to sell RCL stock before shares turn into a big value trap.Royal Caribbean's operating business is likely to remain depressed well into next year or even longer. RCL stock is vulnerable to downside if the vaccine development program suffers any setbacks. As such, Royal Caribbean is attractive only as a short-term trade.Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. At the time of this writing, he held no positions in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Vaccine News Is a Selling Opportunity for Royal Caribbean appeared first on InvestorPlace.

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CrowdStrike Holdings, Inc. (Nasdaq: CRWD) has had an epic run this year and has more than tripled off its March novel coronavirus lows. That's not necessarily unusual for a tech stock these days, and particularly not for one based in the cloud. But what's next for CRWD stock, and does this cloud-based security darling still have further to run?Source: GuruFocus.com CRWD Stock: All About the CloudLong before Covid-19 turned the world upside down, the rise of cloud computing was one of the dominant themes of the past two decades. Amazon.com (NASDAQ: AMZN) essentially invented cloud computing as we know it today in 2006 via its AWS platform, and now it seems that virtually every major enterprise has moved at least part of their computing needs to cloud providers. The software-as-a-service model, in which users essentially rent web-based software as opposed to buying and installing software locally, is also part of this story.InvestorPlace – Stock Market News, Stock Advice & Trading TipsIt's cheaper and ultimately safer to keep data saved on a server than it is on a local hard drive, but the cloud model does create some security risks of its own. Each endpoint – every desktop, laptop, smart phone or other device used to log in – is a potential entry point for a malicious attack from a hacker. * 15 Growth Stocks That Are Being Propped Up By Low RatesThis is where CRWD stock comes in. CrowdStrike provides endpoint security, and it delivers it via the cloud. Its security software works behind the scenes, invisible to the end users, and the company claims its product reduces resource utilization by 25 times versus its competitors. In plain English, that means it won't bog down your device. Revenues Growing Like a WeedCRWD stock is still a baby, as its IPO was just a little over a year ago. But its revenues are growing at a blistering rate.Source: GuruFocusIn early 2018, quarterly revenues were less than $50 million. Today, they're closing in on $180 million and show no sign of slowing.That's the good news. The bad news is that the company isn't profitable. It hasn't had a single profitable quarter in its entire history as a company, or at least not on a GAAP basis.The losses are getting smaller – just $0.09 last quarter – and it's worth noting that the losses are mostly due to high marketing costs, which should presumably help to generate future growth. But as of today, the company has yet to actually make money.And then there is the share price. CRWD stock trades for about 40 times sales. 40 times earnings would be a little on the expensive side. This is 40 times sales. That's a really big bet on future growth that may or may not materialize. Should You Buy CRWD Stock?It pains me to say this because I'm a value investor at heart. But fundamentals really don't matter today, and neither do valuations. Today's market is driven by virtually infinite liquidity coming out of the Federal Reserve. All of the dollars the Fed is pumping into the financial system have to go somewhere, and many are finding their way into tech stocks.I don't know when the party ends. Frankly, I don't know how it's lasted this long in the face of a pandemic that doesn't seem to be getting any better. But with no obvious end to Fed stimulus, the bubble might continue to inflate for a while.Today, this market is favoring high-growth tech companies irrespective of earnings. CRWD stock certainly fits that bill, and I see no immediate catalyst to reverse its move.So, by all means, buy CRWD stock. Trade it. Ride it higher. But don't get married to it, and be prepared to sell when this growth regime shifts and value starts to matter again. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Why CrowdStrike Investors Should Be Prepared appeared first on InvestorPlace.

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Can Canopy Growth (NYSE:CGC) break out over resistance? That's what investors want to know now that Canopy Growth stock, Aphria (NYSE:APHA), and others cannabis stocks are beginning to find some upside momentum. Source: Shutterstock If this group can get buyers to return, then we could see some powerful moves across the board. Cannabis and CoronavirusThe novel coronavirus caused a painful spill in the equity markets. However, many names have come roaring back to life. In some instances, like with the Nasdaq, these investments have gone on to hit new highs. InvestorPlace – Stock Market News, Stock Advice & Trading TipsCannabis stocks were starting to look better in the first quarter of 2020. That was after bottoming in Q4 and showing signs of moving higher. In any regard, cannabis stocks understandably sold off. Many of these names have inferior balance sheets — thankfully CGC stock isn't one of them — and have decelerating growth. In this case, names like Tilray (NASDAQ:TLRY) and Aurora Cannabis (NYSE:ACB) have struggled immensely. * 15 Growth Stocks That Are Being Propped Up By Low Rates Click to EnlargeThat's even as some research suggests that cannabis sales held up fine during the coronavirus outbreak. In fact, some reports show that lockdown orders helped to accelerate cannabis sales. But that's not the narrative. Instead, shares declined in the coronavirus selloff as investors didn't want to own stocks with shaky financials. Further, any cannabis legislation that was sitting on a governor or government official's desk was pushed aside for Covid-19. Eventually these legislations will be addressed, but a delay is not a positive catalyst in the short-term. Canopy Growth Stock Has Staying PowerOn the plus side, Canopy Growth isn't one of those stocks with shoddy financials. The company boasts $2.56 billion in current assets and $6.8 billion in total assets. Those sums dominate current and total liabilities, which come in at just $420.5 million and $1.75 billion, respectively. Admittedly, Canopy Growth is not profitable or free cash flow positive yet. So continuing operations will further erode its balance sheet over time. But that is true for virtually all of the industry at this point. In the case of CGC stock, its assets are large enough to buoy its business in the meantime. It helps that it has Constellation Brands (NYSE:STZ) as its largest holder. At some point, the company could become the majority shareholder and that has helped to keep Canopy's bank accounts adequately supplied. The company recently exercised its warrants to bring its total stake in Canopy up to 38.6%. Bottom Line on Canopy Growth Click to EnlargeSource: Chart courtesy of TradingViewI like Canopy Growth, even though the industry has had trouble gaining some traction. This is the leading stock in this group, and when the sector catches some momentum, so too with CGC stock. Canopy is making moves into the U.S., first sinking into the CBD market to drive U.S. sales. It will also be in position for if (and more likely when) cannabis becomes legal at the federal level. The company has also shuffled up its management team, which should help turn the page to a more optimistic future. Obviously the coronavirus will come with its own headaches, but by and large, cannabis is being more widely accepted and that is a positive for the group over the long-term. On the charts, CGC stock is starting to rotate over the $18.30 area. It's also putting in a series of higher lows and maintaining over the 20-day and 50-day moving averages. If shares can clear this area and the 200-day moving average, the May highs near $22 could be in play. What if shares don't gain enough momentum to break out? In that case, technical traders will want to keep an eye on the $16.50 level. That's where uptrend support (blue line) comes into play. However, if this level is lost, it also means that the 20-day and 50-day moving averages failed in supporting the stock. That could put the July and June lows in play, at $15.57 and $15.32, respectively.Matthew McCall left Wall Street to actually help investors — by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. Click here to see what Matt has up his sleeve now. As of this writing, Matt did not hold a position in any of the aforementioned securities.  More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Momentum in Canopy Growth Stock Could Send Shares to $22 appeared first on InvestorPlace.

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Under the traditional or commonplace definition, cyclical stocks are investments that are largely impacted by macroeconomic events. In a bull market, for instance, you'll see Wall Street top dogs transition into cyclical sectors to advantage growth opportunities. Of course, with the incredibly disruptive novel coronavirus, all bets are off the table.Or are they? To be sure, conservative investors will want to give their portfolio a healthy dose of secular names, or assets that perform reliably well irrespective of market conditions. And some of these investments, such as food-related securities, are acting very much like cyclical stocks due to their newfound relevance and momentum.However, for those that can stomach a little risk, genuine cyclical stocks have an opportunity for potentially massive upside. Unlike other recessionary periods, the new normal was arguably not caused by an economic vulnerability. Prior to the pandemic, one of our fiscal headwinds was the U.S.-China trade war. Still, both sides were making headway until disaster struck.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThus, it's not unreasonable to assume that some cyclical stocks will bounce back once the coronavirus fades away or until we have a vaccine. Once we get back to normal – as in, a real normal – these companies could enjoy a so-called V-shaped recovery: * Microsoft (NASDAQ:MSFT) * FireEye (NASDAQ:FEYE) * Blink Charging (NASDAQ:BLNK) * Honda (NYSE:HMC) * Albemarle Corporation (NYSE:ALB) * Newmont Corporation (NYSE:NEM) * Smith & Wesson Brands (NASDAQ:SWBI) * Sportsman's Warehouse (NASDAQ:SPWH) * Canopy Growth (NYSE:CGC) * 15 Growth Stocks That Are Being Propped Up By Low Rates Finally, keep in mind that the Covid-19 outbreak has not dampened our innovative or resourceful spirit. In some ways, the coronavirus has shifted our priorities. And these nine cyclical stocks to buy stand to benefit from this unprecedented transition. Microsoft (MSFT)Source: NYCStock / Shutterstock.com Shortly after the pandemic disrupted most Americans' ability to make a living, the rise of a new set of cyclical stocks – the work-from-home sector – captured everyone's attention. Logically, you can benefit from this phenomenon through trending names like Slack Technologies (NYSE:WORK), Dropbox (NASDAQ:DBX), and of course Zoom Video Communications (NASDAQ:ZM). But I'm going to start off with a classic: Microsoft.While the other names I mentioned provide specialized solutions, in this crisis, it doesn't hurt to have a jack-of-all-trades. But don't say that Microsoft isn't a master of none because that's far from the truth. As a freelancer myself, I have always found the company's products to be lifesavers. Yes, other competing platforms exist, but they don't have the same cachet. Therefore, I love the long-term potential of MSFT stock.And it's not just my words. Microsoft saw its earnings jump in the first quarter of this year thanks to robust cloud-computing demand during the pandemic. With the coronavirus again rearing its ugly head – aided perhaps by stupid people in this country – MSFT stock might enjoy its own resurgence. FireEye (FEYE) Click to EnlargeSource: Michael Vi / Shutterstock.com While employees are probably loving the transition to remote work, management may soon have a different take. No, I'm not talking about suspicions that your supervisor may have about you actually working from home. Rather, the shift to telecommuting opens a new battleground for cybercriminals. Because of this rather fortuitous event for cybersecurity firms, this may finally be the moment for FireEye.Don't get me wrong: if you're looking for cyclical stocks in this space, you're better off with stable competitors like Palo Alto Networks (NYSE:PANW) or Check Point Software Technologies (NASDAQ:CHKP). However, FEYE stock is rather attractive because of its low price and favorable fundamentals. Frankly, there's never been a more crucial time for enterprises to protect their digital ecosystem. Thus, FireEye may benefit from a rising tide. * 10 Work-From-Home Stocks That Are Beating the Pandemic Also, Morgan Stanley raised its price target for FEYE stock to $13 from $12. Although I don't recommend blindly following analysts' forecasts, they may have a point here. Plus, this is the best chance that FEYE has ever had for upside. Blink Charging (BLNK)Source: David Tonelson/Shutterstock.com Earlier this year, Blink Charging shares were barely above penny stock status. Admittedly, it got very scary following the initial attack from the coronavirus.Since the March doldrums, though, BLNK stock has blossomed into one of the most compelling cyclical stocks to buy. What's more remarkable is that in the past five years, shares were all over the map. Back then, electric vehicles represented only a small portion of automobile sales. And to be clear, that hasn't changed much. What has changed is the attitude.You see, the oil price falling below zero wasn't just an unprecedented, though thankfully temporary calamity. It also was emblematic of a decided consumer shift toward cleaner fuel vehicles. Therefore, the much-discussed hype about a massive transition to electric now has credibility.But what has practically prevented mainstreaming of EVs is infrastructure. After all, not every driver has access to a garage. That's where Blink Charging comes into play with its network of charging stations. Thanks to the aforementioned consumer shift, BLNK stock should be a long-term winner. Honda (HMC)Source: Jonathan Weiss / Shutterstock.com If you're looking to invest in the EV space, you should primarily focus on Tesla (NASDAQ:TSLA). Even if you don't like the nominal price tag of TSLA, you could always opt for fractional ownership via platforms like Robinhood. That's probably why gravity seemingly has no effect on Tesla.Still, there's something to be said about going for the obvious pick. If you want to enjoy the advantages of cyclical stocks in the EV market but want something with perhaps higher profitability potential, you might want to check out Honda.As EVs become mainstream, I believe that consumers will expect more from their automotive brands. Though Tesla has a tremendous lead in the space, they don't stack up too well in terms of reliability. Also, many Tesla owners in the past have been frustrated with the company's slow repair times. These misfires could provide an underappreciated opportunity for HMC stock as Honda prepares to go EV only from 2025.As everyone knows, Honda has built a longstanding reputation for reliability. It's not that much of a stretch to assume it will apply the same principle to EVs. Also, Honda's extensive dealership networks could provide far superior service for customers. * 8 Presidential Election Stocks to Buy in Case Trump Wins Again Of course, this is a riskier contrarian play. But if you prefer unconventional thinking, HMC stock could be your ticket to success. Albemarle Corporation (ALB)Source: IgorGolovniov/Shutterstock.com Out of all the high-probability cyclical stocks available, those levered to the EV market could witness the biggest gains. From true energy independence to environmental concerns, electric power hits the right notes for the emerging generation. However, picking individual EV players is fraught with risk. To mitigate the dangers to your portfolio, you may want to consider Albemarle Corporation.An industry leader in lithium and lithium derivatives, Albemarle essentially acts as an umbrella investment. At a certain point, you'd expect auto rivals to challenge Tesla's throne. Though Tesla enjoys brand dominance, it can't possibly sell to every American driver. For instance, the company is leaving open the economy car segment, which should see intense competition. And that just translates to higher demand for lithium, boosting ALB stock.Theoretically, EVs are easier to make, which is another reason why automakers are rushing into the arena. Just the presence of mass (and viable) competition could shake things up at Tesla. But for ALB stock, more competition will bring in more consistent revenues. Newmont Corporation (NEM)Source: Piotr Swat/Shutterstock To be perfectly honest, cyclical stocks related to the gold industry have relied on an old but dangerous adage: "this time, it's different." Unfortunately, every time someone uttered this phrase following gold's record-breaking move last decade, enthusiasm quickly met with disappointment. Nevertheless, I'm bullish on Newmont Corporation.First, this time, it really is different. Though we've suffered pandemics in our past, we've never encountered one that forced state governments to shut their economies. Typically, gold rises on fear and uncertainty, and there's plenty of that going around. Thus, with higher demand for the underlying commodity, NEM stock is finally enjoying a credible fundamental tailwind.Second, the resurgent coronavirus is almost screaming the case for gold-related investments. Obviously, another round of state shutdowns will cause much calamity. With federal relief funds to support the unemployed about to expire soon, NEM stock could jump on the fear trade. * The 7 Best Stocks to Invest in Right Now But the biggest catalyst could be the Federal Reserve. Given that no playbook exists for responding to this crisis, the central bank will probably adopt an inflationary policy. This could be the spark that sends gold prices to absolutely ridiculous levels. Smith & Wesson Brands (SWBI)Source: Supakorn Pe / Shutterstock.com Not all rises in cyclical stocks are due to uplifting reasons. Case in point is the unbelievable growth in Smith & Wesson Brands. Ironically, SWBI stock didn't do all that well under the Trump administration. First, the fear of Democrats taking away people's firearms just didn't exist. Second, crime went down during his first term, although many question the President's role in this trend.But now, the narrative has completely changed. The coronavirus exposed Trump as an effective leader only in good times. When the chips are down, he appears vulnerable. Unfortunately for him, this disaster struck on a pivotal election year.Analyzing the dynamics of the political race, I still believe Trump has a shot of winning. However, that's an unpopular opinion and the rise of SWBI stock reflects this.Also bolstering the case for Smith & Wesson is that violent crime is now surging in major U.S. cities. With law enforcement departments throughout the U.S. beleaguered due to nationwide calls for justice, individual citizens are left with few options other than to take matters into their own hands. Sportsman's Warehouse (SPWH)Source: OpturaDesign/Shutterstock.com With a second wave of infections hitting us like a freight train, we are almost surely headed toward an ugly recession. Yes, the White House has boasted about record-breaking jobs gains in May and June. However, most of that came from low-paying service sector occupations that partially returned when states began reopening.Now, that's off the table. Logically, that will translate to a truly ugly jobs report for either July or August. And that doesn't bode well for cyclical stocks geared toward the retail market. However, investors should make an exception for Sportsman's Warehouse.Because of the word "sports" in the company name, you might think that this is an athletic apparel retailer. You're not too far off. I call Sportsman's Warehouse Nike (NYSE:NKE) for coalminers.Basically, it sells guns – lots and lots of guns. As I mentioned with Smith & Wesson, this is a very popular sector; hence, the meteoric rise in SPWH stock.Additionally, I'm not sure when the enthusiasm will end. While cries for defunding the police may sound good for some political groups, I'm positive that it's scaring the heck out of most people. Of course, due to cancel culture, they're not going to admit that. * 9 Ugly Natural Gas Stocks to Keep on Your Watchlist Instead, they're buying guns, which is why you should look into buying SPWH stock. Canopy Growth (CGC)Source: Shutterstock When Canada became the first G7 member state to legalize recreational marijuana, many folks – including yours truly – thought that this would usher in a transformative paradigm shift. From my perspective, we were talking about turning a previously illegal market into a legal and therefore taxable one. So, I was excited about Canopy Growth and CGC stock. Eventually, though, that excitement turned into disappointment.In hindsight, Canopy like so many of its rivals focused almost exclusively on growth. Unfortunately, the legal cannabis market in Canada was not prepared to handle the rollout. Much of the setbacks came from the government, specifically cannabis license application backlogs. Also, not enough dispensaries existed in high-demand provinces, causing supply-demand bottlenecks.Still, that's not to excuse the business leaders in this market. They made poor decisions, which ultimately hurt investments like CGC stock.However, the coronavirus could give controversial cyclical stocks like CGC another lease on life. Specifically, the new normal has been tough on mental health. Though research is still being conducted in this area, cannabis and non-psychoactive cannabidiol (CBD) may offer organic relief.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he is long gold. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 9 Cyclical Stocks Whose Time Is Coming Around appeared first on InvestorPlace.

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Brown Advisory recently released its Q2 2020 Investor Letter, a copy of which you can download here. The Equity Income Fund posted a return of 18.29% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 20.55% in the same quarter. You should check out Brown Advisory’s top 5 stock picks for investors […]

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Intuitive Surgical soared to a record high a couple of days after breaking out. The maker of robotic surgical systems likely benefiting from coronavirus vaccine hopes. A vaccine would let surgeries go back to normal. The only problem with ISRG – besides being extended now – is that earnings are due Tuesday night.

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